RBI panel submits report on framework for AI use to foster innovation and mitigate risks in financial sector
The Reserve Bank of India has introduced a framework for the responsible and ethical integration of Artificial Intelligence in the financial sector. Anchored by seven core principles, the framework includes twenty-six recommendations across six strategic pillars. This initiative follows surveys and stakeholder consultations aimed at understanding AI adoption and challenges within the financial industry.
Reuters As Artificial Intelligence enters everyday life, the Reserve Bank of India's panel on Wednesday submitted its report on framework for Responsible and Ethical Enablement of Artificial Intelligence (FREE-AI) in the financial sector. "The framework is anchored in seven sutras which serve as the foundational principles and is operationalised through twenty-six targeted recommendations under six strategic pillars," said RBI in its document. "In order to encourage the responsible and ethical adoption of AI in the financial sector, the FREE-AI Committee was constituted by the Reserve Bank of India. The RBI conducted two surveys to understand current AI adoption and challenges in the financial sector. The Committee referenced these surveys and, in addition, undertook extensive stakeholder consultations to gain further insights," said the RBI panel's document. The Committee formulated 7 Sutras that represent the core principles to guide AI adoption in the financial sector. These are: (i) Trust is the Foundation (ii) People First
(iii) Innovation over Restraint (iv) Fairness and Equity (v) Accountability (vi) Understandable by Design
(vii) Safety, Resilience and Sustainability
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